Young Investor - Sneaky BRRRR

[Cole Gorham]

It's come to my attention that there's a sneaky BRRRR, or a "live and flip".

Heres my current situation and I would love financial perspective on if this is a viable wealth builder for my first deal.

I am a 23 year old residential contractor. I've got about $40k liquid that I would like to use to get into the market. I currently pay $1,400 a month for rent at an apartment. My lease is up in February. I would like to house hack but don't want to do it in a C class neighborhood. I would rather stay in the Whote Bear, Stillwater, Mahtomedi area. So if a duplex were to be there I would but. 

But

I feel like a viable option for me would be to live and flip for a year or two. This would allow me to qualify for an FHA 3.5% loan and use my contracting resources to slowly put some sweat equity into the property. Obviously, I don't have numbers, as I don't have any houses I'm currently looking at. But is this a smart way to begin my real estate journey, with my goal being to retire myself and future wife by 40 with 20 doors. Thanks so much!

[Benjamin Aaker]

Sounds like a good plan. The only thing is that to get the FHA loan, your property has to be in decent condition, so there isn't a huge amount of work to be done on it except for cosmetics.